Fiduciary management is a crucial tool for many pension scheme trustees. But concerns over the competitiveness of this market and the effect that could have on member outcomes has grown in recent years.
Professional Pensions research, conducted in association with Goldman Sachs Asset Management, demonstrates a similar story; with over half of trustees in our survey opting to appoint their incumbent investment consultant as fiduciary manager, rather than going through a more complex tender process.
Of course, that s not an issue in itself, assuming that tender processes have been conducted openly, competitively and rigorously.
Our research, however, shows that this is not always true, and that trustees appointing their incumbent consultant tend to run less rigorous selections.
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NICK ZIEMINSKI/Reuters
Somehow, equity markets have made it to the end of the first quarter of 2021 in one piece, demonstrating bulletproof resilience to both well-understood and out-of-the-blue challenges.
The opening months of the year clearly provided nothing on the scale of the pandemic shock from the same period in 2020. Nevertheless, several mini-quakes arrived along the way. First, hordes of market novices humbled some of the sharpest minds in hedge funds in the GameStop Corp. GME-N saga.